Compensated Absences
During Year 1 (the first year of the company’s existence), employees of the company earned vacation days as follows:
|
|
Average Wage |
Vacation Days |
Vacation Days |
|
Employee |
per Day |
Earned This Year |
Taken This Year |
|
1 |
$160 |
10 |
10 |
|
2 |
200 |
15 |
10 |
|
3 |
250 |
20 |
5 |
(1) Make the journal entry necessary at the end of Year 1 to record the unused vacation days earned during the year and (2) make the journal entry necessary in Year 2 to record the use of all of these vacation days. Assume that all employees received a 10% pay raise in Year 2.